The significance of a flag break .... Answers to questions

    All Channels      Market Reviews  

Derek  4 Jun 2018


All indices positive and all Indices in the East broke their negative trend lines.

The Nasdaq has broken its flag and the S&P500 is touching the top of its flag. What is the significance of a flag break? Usually the price moves the same distance as the flag pole out of the flag, and that is quite a strong % move.

Mastercard has broken its flag and top resistance. Notice how FrontRunner has also broken its trend line.

JSE Technical:
Naspers was in a negative trend lately, but made a massive +5.72% move on Friday. Hopefully the momentum can break the negative trend line today. Tencent is strong this morning.

After bouncing on strong support, Sanlam now broke its negative trend line.

Answers to Questions:
Question 1: "What about Dis-Chem now?"
Well is remains in positive trend until negative indicators stop its move again.

Question 2: "Can I buy Steinhoff now as it is very low?"
I was asked this when the price was R17,61 R9,50 R2,56 and it is now R1,15. Need I say any more? My own opinion is that the share will finally get delisted at a few cents. Some of the older folks might still remember Brainware. Every time it dropped 10c, everyone said this is now a good buy. It dropped from R1,20 to 2c when it was finally delisted.

Do you see any positive trend or turn on this chart?

There is no such thing as a stupid question. We can only answer it technically as all our systems are build on technical analysis. Questions can be send to

You must enjoy your day.
Download TradeFX™

Copyright © 2017 {Zoclee}™. All rights reserved.